Ensure your car insurance claims are paid with these tips

It is important to know how to ensure that your car insurance claims are paid, and while the process seems so simple, dishonesty or non-compliance with the insurance policy requirements, can result in your claim being refused and you being out of pocket.

December is called the most wonderful time of the year, but the festive season also tends to be the riskiest time of the year, characterised by an increase in car accidents and home invasions.

“Therefore, while you have your eyes firmly set on a well-earned break or some festive fun under the sun, it is also important to ensure you have all your proverbial ducks in a row before the year draws to a close to avoid any unwanted surprises,” says Youlon Naidoo, executive head for claims and procurement at MiWay Insurance.

It is always comforting to know that your valuables are insured in the event of an accident or theft, but it is also important to remember to stick to the terms of your insurance contract.

“Therefore, before setting off on your festive break, take time to tick all the boxes necessary to ensure that your cover is not compromised in the event of an emergency.”

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Naidoo give these tips to remember to ensure that your claim will be paid if you have to claim:

Doubts about the regular driver

One of the first things to remember is to ensure that the regular driver of your vehicle is reflected accurately on your car insurance policy.

This is important because insurance premiums are calculated according to the risk you potentially pose as an individual and not just on the vehicle you drive. For example, people who had their driver’s license for less than a year are assessed differently to those who have been behind the wheel for 20 years, Naidoo says.

While it might be tempting to list a more established driver with hopes to save on those monthly premiums, this approach will severely backfire on you when claiming after an accident.

Should checks reveal that the regular driver of your car is not the person listed on your car insurance policy, your claim is at risk of being rejected due to the prejudiced risk profile and your insurer could even impose higher premiums going forward.

Be honest as it is the best (for your) car insurance policy

When you take up insurance cover your insurer will ask for information relevant to your risk profile, including particulars such as your home address, where you park your car and how often you use your vehicle.

By providing the right information and keeping it up to date should any changes occur, allows your insurer to calculate the right premium based on your risk profile. If you do not truthfully disclose relevant information, it could be considered material misrepresentation and alter the terms and conditions of the policy contract.

Remember that dishonesty and non-disclosure may be regarded as fraud and lead to your claim being rejected. In some cases, it may also result in your policy being cancelled, or even lead to prosecution for insurance fraud. Therefore, if any of your information changed since taking out your insurance policy, make sure to let your insurer know as soon as possible, Naidoo says.

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Take care of your car’s tyres

Tyres are to cars what shoes are to humans – a worn out pair can only take you so far before causing you problems, Naidoo says.

A tyre with insufficient tread, or a cut, or other damage decreases its ability to hold the road, thereby compromising its braking system and increasing the risk of the tyre bursting while the vehicle is in motion and causing an accident.

It is vital that you keep your tyres in top shape, check them regularly for nicks, tears or punctures and making sure that the tread meets the minimum roadworthy standard depth of 1mm.

If you are involved in an accident while your tyres are worn it could put your insurance claim at risk, even if you did not cause the accident.

“Be kind to your tyres and they will be kind to you.”

Good driving habits

To err is human and mistakes can happen, but while causing an accident does not necessarily put your subsequent claim at risk, doing so as a result of reckless driving is likely to make the process very difficult.

Naidoo warns that if your accident is a direct result of you breaking the rules of the road, your insurer is not obliged to honour your claim.

Reckless speeding, gross negligence, driving under the influence of alcohol, driving without a valid license, or driving an unlicensed vehicle puts you and others at risk and could result in a claim being rejected in the event of an accident. “Stick to the rules of the road and aim for that ‘Driver-of-the-Year’ award.”

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Remember to pay for your car insurance cover

An insurance policy covers you for the period between payment dates and Naidoo says if you miss a payment after the period of grace where applicable you will not be covered.

This means that your insurer can choose not to honour a claim for an incident which occurred during that time, or opt to cancel your policy entirely, depending on your policy terms and conditions.

If your policy is cancelled for non-payment, future insurers could regard you as a high-risk individual.

“Therefore, before heading out for all that festive shopping, make sure your premium payments are up to date to avoid potential long-term complications.”

Top tips for avoiding complications with a claim

• Make sure the details on your insurance policy accurately reflect your reality. Even if it means paying a little extra each month, the long-term savings could be significant.
• Play your part. Your insurance policy is an agreement between two parties and it is important that you understand and honour your obligations if you want to have less hassles when claiming. This means keeping your car in a roadworthy condition and not engaging in any type of behaviour that could be considered excessively risky or illegal.
• Pay on time, every time. Timeous payment is critical if you want to avoid having your claim rejected. If you are unable to make your monthly payment for any reason, contact your insurer to reach an agreement that does not put your policy at risk.

Know your rights

If your car insurance policy was cancelled or your claim rejected and you feel that the decision on the part of the insurer was unfair, there are various avenues to explore to dispute the outcome.

“Insurers have a vested interest in treating clients fairly and your first port of call should be the insurer’s own dispute resolution team,” Naidoo says.

If the matter remains unresolved, you can approach the Ombud for Short-Term Insurance, who will offer an objective and specialised assessment of your case and provide adequate resolution if merited.